GIPF receives N$321m dividend from FirstRand Namibia – Windhoek Observer

Martin Endjala

The Government Institutions Pension Fund (GIPF) has announced that FirstRand Namibia Group has declared dividends of N$321 million in favour of the Fund for the financial year that ended in June 2023.

The ceremonial dividend cheque was handed over this week at the GIPF Head Office in Windhoek. The state-owned entity holds 15.71 percent shares in FirstRand Namibia Ltd owning an estimated 42 million in shares.

GIPF gained its initial exposure to this investment in 1996 through its investment in the then City Savings and Investment Bank (CSIB) which was later taken over through a corporate acquisition by the then SWABOU building society, which was later further amalgamated into the First National Bank Group in July 2003.

GIPF in line with the Pension Funds Act, Regulation 13, is required to hold a minimum of 45 percent of its investments in Namibian assets with a maximum of 3.5 percent of its investments in unlisted investments.

This legislation enables and encourages investments in the domestic market to ensure that Namibian savings are utilised to stimulate local development.

Speaking at the symbolic dividend handover ceremony this week, GIPF’s Chief Executive Officer and Principal Officer Martin Inkumbi, said the declaration of dividends such as this from the FirstRand Namibia Group, is a result of the prudent financial management of the Fund, which ensures that GIPF remains well funded over time.

“Where asset values in the portfolio exceed the value of liabilities for the benefit of all GIPF members. To achieve this, GIPF uses an investment approach that is aware of the liabilities, risks and returns being measured over time relative to its liabilities,” Inkumbi pointed out.

The GIPF’s current share value in FirstRand Namibia stands at more than N$2 billion.

Inkumbi said as a defined benefit Pension Fund, the GIPF continues to provide guaranteed pension benefits to its members as defined by the Rules of the Fund.